Date: Jul 23, 2018
Mustang Resources has completed its maiden JORC mineral resource estimate for the Caula vanadium-graphite project in Mozambique, amounting to 22 million tonnes (Mt) at 0.37 per cent vanadium pentoxide (V2O5).
The news came days after Mustang announced the merging of its ruby interests with Toronto- and Dubai-based Fura Gems as part on attempt to dedicate its focus solely on the Caula project.
Mustang managing director Bernard Olivier said, “This is an exceptional result, with over 81,000 tonnes contained V2O5, particularly given that the entire JORC resource is in the measured category.
“With vanadium pentoxide prices running at more than $US40,000 ($54,000) per tonne (98 per cent V2O5), the Caula resource translates to a highly valuable resource.”
Chinese vanadium demand has experienced a 15 per cent jump in one month from April to May 2018. Minimum specifications for building constructions in China have become more stringent in recent years, causing steel mills to make a switch to higher-strength steel.
Meanwhile, the production of batteries consumed 3000 tonnes of vanadium last year, which was twice as much the figure reported in 2016. This is due to the expanding markets for graphite and lithium battery for electric vehicles.
